Everybody knows that Yellen made a speech Monday (June, 6[SUP]th[/SUP]) at 4:30pm GMT.
Based on the 30 minutes chart below of the EUR/USD pair, why the market was bullish way before she started the speech (as you can see at 12:30 GMT, the bulls were very strong) ? :
As a beginner, I am still learning more about technical analysis, even though I think (and please, correct me if I’m wrong) that this movement is “predictable” thanks to fundemental analysis (which I haven’t tackled yet… I’m following the Pipsology program).
The only thing predictable about any market, is that it is generally unpredictable. It’s immensely difficult to predict direction and price movements, especially if you’re trading “the news”. In my opinion, best to sit on the sidelines.
The market Fundamentals can change at any time. This is why a pair that is bullish at any given time can turn Neutral to bearish and the same thing happen with the Euro
The question isn’t “why did the market move” but, “how am I going to position my equity based on the current technical / fundamental snapshot so I can make a profit”.
No one on this globe will be able to definitively answer your original question.
Now, my question, on the other-hand, is 100% answerable.
Seriously, I don’t know but I was following the forum here on eu/usd and was told that it’s going up but I don’t know why exactly. I think it’s about interest rate and Yellen just leave it as it is and that won’t be good for usd.